Assessing Process Maturity to Make Lean Six Sigma More Effective

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  • Talk about well defined process, but poorly performed, i.e. badly used.
  • Lean focuses on the whole flow Six Sigma focuses on reducing variations
  • So, based on the problem and an understanding of the fundamental similarities of CMMs and CMM-based improvement methods, the CMMI project was born! <We could add organizational slides here for backup>
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  • Assessing Process Maturity to Make Lean Six Sigma More Effective

    1. 1. Assessing Process Maturity to Make Lean Six Sigma More Effective 2 nd Annual WCBF Lean Six Sigma Summit November 16-18, 2005 Dallas, Texas Hung Le, Ph.D. Master Black Belt [email_address] Northrop Grumman Corporation
    2. 2. Overview <ul><li>Lean Six Sigma is very effective for process improvement when you have “matured” processes </li></ul><ul><li>Lean Six Sigma tools are not as effective at addressing systemic problems resulting from an undisciplined process </li></ul><ul><li>Understanding process maturity will allow for more proactive management of critical processes </li></ul><ul><li>Significant gains can be achieved by taking ill-defined processes to a more defined level of process maturity </li></ul>
    3. 3. Discussion Topics <ul><li>Introduction & Motivation </li></ul><ul><li>Capability Maturity Model Integrated (CMMI) </li></ul><ul><li>Using Lean Six Sigma to Improve Engineering Process Maturity (i.e. CMMI Levels 4 & 5) </li></ul><ul><li>Adopting CMMI Capability Maturity Model to Improve the Effectiveness of Lean Six Sigma Deployment </li></ul><ul><li>Summary & Concluding Remarks </li></ul>
    4. 4. Lean Six Sigma Approach To Process Improvement Measurements Start Here Y = f ( X i ) Lean Six Sigma focuses on the measurement Y and its relationships with the process inputs Xs to drive real improvement
    5. 5. Variations Resulting from Lack of Process Discipline Wide Variations Instability and Non-Predictability <ul><li>Internal conflicts </li></ul><ul><li>Lack of skills / resources </li></ul><ul><li>Ad hoc training </li></ul><ul><li>Processes are improvised </li></ul><ul><li>No process discipline </li></ul><ul><li>Tools & technology are not standardized </li></ul><ul><li>Equipment is acquired on an ad hoc basis </li></ul><ul><li>Demand shifts </li></ul><ul><li>Market turbulence </li></ul><ul><li>Measurement is faulty and/or incomplete </li></ul><ul><li>Measurement inconsistency </li></ul><ul><li>Lack of skills </li></ul><ul><li>Ad hoc training </li></ul>No vital few sources of variations can be isolated. Wide variations exist due to an un-disciplined process Effect (Ys)
    6. 6. Three Aspects of a Disciplined Process Process Definition Activities Document Specifying the Process People with the Knowledge to Drive Their Behavior Achieved Business Results Without a disciplined process, work tends to fixate on finding and fixing defects at the risk of ignoring important customer’s concerns
    7. 7. What is the Capability Maturity Model Integrated (CMMI)? <ul><li>The CMMI is a collection of industry best-practices for engineering and management </li></ul><ul><ul><li>Developed under the sponsorship of DoD </li></ul></ul><ul><ul><li>Consistent with DoD and commercial standards </li></ul></ul><ul><ul><li>Addresses both software and systems engineering </li></ul></ul><ul><li>Project Management </li></ul><ul><ul><li>Project Planning </li></ul></ul><ul><ul><li>Project Monitoring and Control </li></ul></ul><ul><ul><li>Supplier Agreement Management </li></ul></ul><ul><ul><li>Integrated Project Management) </li></ul></ul><ul><ul><li>Risk Management </li></ul></ul><ul><ul><li>Quantitative Project Management </li></ul></ul><ul><li>Engineering </li></ul><ul><ul><li>Requirements Development </li></ul></ul><ul><ul><li>Requirements Management </li></ul></ul><ul><ul><li>Technical Solution </li></ul></ul><ul><ul><li>Product Integration </li></ul></ul><ul><ul><li>Verification </li></ul></ul><ul><ul><li>Validation </li></ul></ul><ul><li>Support </li></ul><ul><ul><li>Configuration Management </li></ul></ul><ul><ul><li>Process and Product Quality Assurance </li></ul></ul><ul><ul><li>Measurement and Analysis </li></ul></ul><ul><ul><li>Organizational Environment for Integration </li></ul></ul><ul><ul><li>Decision Analysis and Resolution </li></ul></ul><ul><ul><li>Causal Analysis and Resolution </li></ul></ul><ul><li>Process Management </li></ul><ul><ul><li>Organizational Process Focus </li></ul></ul><ul><ul><li>Organizational Process Definition </li></ul></ul><ul><ul><li>Organizational Training </li></ul></ul><ul><ul><li>Organizational Process Performance </li></ul></ul><ul><ul><li>Organizational Innovation and Deployment </li></ul></ul>
    8. 8. How was the CMMI Created? <ul><li>DoD sponsored effort </li></ul><ul><ul><li>50+ defense and commercial companies contributed for over 2 years </li></ul></ul><ul><ul><li>CMMI 1.0 released in 2000, version 1.1 in March 2002 </li></ul></ul>ADP, Inc. AT& T Labs BAE Boeing CSC EER Systems Ericsson Canada Ernst and Young FAA General Dynamics Harris Corporation Honeywell KPMG Litton Lockheed Martin Motorola National Security Agency Northrop Grumman Pacific Bell Q- Labs Raytheon Rockwell Collins Software Engineering Institute Sverdrup Corporation Thomson CSF U.S. Army U.S. Navy U.S. Air Force
    9. 9. CMMI Capability Maturity Model Minimal or no processes in place Disciplined project management Standard organizational processes tailored by projects Selected organizational and project processes managed quantitatively Processes continuously improved using quantitative measures More Maturity Implies Greater Capability in Meeting Quality, Cost, and Schedule Process unpredictable, poorly controlled and reactive Process characterized for projects and is often reactive Process characterized for the organization and is proactive Process measured and controlled Focus on process improvement Level 4 Quantitatively Managed Level 1 Initial Level 2 Managed Level 5 Optimizing Level 3 Defined High Maturity Requires Quantitative Methods
    10. 10. How is Organizational Maturity Determined? <ul><li>The scope of the organizational unit is identified </li></ul><ul><ul><li>Department, site, division, company, etc. </li></ul></ul><ul><li>A formal appraisal is conducted </li></ul><ul><ul><li>Appraisers evaluate the organizational infrastructure and projects against all practices and process areas in the CMMI </li></ul></ul><ul><ul><li>SCAMPI (Standard CMMI Appraisal for Process Improvement) is the standard appraisal used for benchmarking </li></ul></ul><ul><ul><ul><li>Northrop Grumman has conducted more SCAMPI appraisals than any other organization in the world </li></ul></ul></ul><ul><ul><li>Must be led by a qualified Lead Appraiser </li></ul></ul>
    11. 11. A Direct Correlation Between Process Maturity and Performance 10:1 Defect Reduction Less Defects Delivered 50% Productivity Increase More Accurate Estimates Rework Drops From 54% to 4% Industry Results Show Overwhelming Benefits
    12. 12. How Has Lean Six Sigma Aligned with CMMI?
    13. 13. Lean Six Sigma Provides the Tools <ul><li>Level 4 </li></ul><ul><li>1) Understand p roject’s process capabilities based on process performance baselines </li></ul><ul><li>2) Control process variation (remove “assignable causes”) </li></ul><ul><li>3) Predict results using process performance models </li></ul><ul><li>4) Manage to achieve goals </li></ul><ul><li>Level 5 </li></ul><ul><li>1) Base improvement goals on future business needs </li></ul><ul><li>2) Eliminate problem and defect causes (“common causes”) </li></ul><ul><li>3) Select, predict, and measure improvements to change the process performance baselines </li></ul><ul><li>- Shift the mean; tighten the variance </li></ul><ul><li>4) Manage change </li></ul>Level 4 1) Understand p roject’s process capabilities based on process performance baselines 2) Control process variation (remove “assignable causes”) 3) Predict results using process performance models 4) Manage to achieve goals Level 5 1) Base improvement goals on future business needs 2) Eliminate problem and defect causes (“common causes”) 3) Select, predict, and measure improvements to change the process performance baselines - Shift the mean; tighten the variance 4) Manage change Side effects of register usage Can’t keep track Poor documentation Register allocation defect Incorrect processor register usage Lack of processor knowledge Can’t isolate Pass 1 architecture Process knowledge UCL 1 LCL 1 UCL 2 LCL 2 1 2 3 4 5 6 7 7C 8B 8B 8C 8D 8F 20 21 22 23 0 2 4 6 8 10 12 14 16 Actual Expected 95% limits UCL _ X Process variation Process performance Improve & Control Stabilize Predict
    14. 14. How Can We Leverage CMMI to Make Lean Six Sigma More Effective? Adopt the CMMI Framework for Organizational Process Improvement
    15. 15. CMMI Adoption - Conceptual Framework Identify Critical Process Areas and Align with Strategic / Tactical Goals Track & Monitor Progress Against Improvement Plan <ul><li>Scope of improvement effort is determined </li></ul><ul><li>An unfiltered list of critical process areas is compiled </li></ul><ul><li>Alignment with strategic / tactical goals </li></ul><ul><li>A prioritized list of process areas is established based on assessed gaps </li></ul><ul><li>Prioritization is based on impact vs. process maturity </li></ul><ul><li>Establish goals </li></ul><ul><li>Develop improvement strategy & timeline </li></ul>Conduct Informal Assessment & Recommend Strategy and Timeline Develop Improvement Plans Based On Organizational Goals Execute Improvement Plans to Achieve Maturity Goals Conduct Formal Review To Verify Goals Develop Org. Plan & Establish Org. Infrastructure <ul><li>Establish organizational goals </li></ul><ul><li>Develop improvement plans for the critical process areas </li></ul><ul><li>Depending on current level of maturity, use appropriate tools to address process performance gaps </li></ul><ul><ul><li>- Address process gaps to achieve level 3 </li></ul></ul><ul><ul><li>- Use Lean Six Sigma to achieve Levels 4 & 5 </li></ul></ul><ul><li>Formal assessment is conducted to verify goals have been achieved </li></ul><ul><li>Address any gaps resulting from assessment </li></ul>
    16. 16. CMMI Adoption - Conceptual Framework (cont.) Performance gap analysis can be summarized by mapping attributes of performance / process maturity versus the criticality of the attribute as shown in the example below: Watch De-Emphasize Focus Improvement Efforts Protect/Optimize Low High Process Maturity / Performance 1 2 3 4 5 6 7 8 9 10 12 13 14 15 High Low 11 Criticality to Operations/Function In this example, the focus should be on 2 and 9 for process improvement Based on established maturity goals, optimize 3 & 11, and sustain 1, 4, 5 & 14 Using Lean Six Sigma or DFSS <ul><li>Conformance </li></ul><ul><li>Process </li></ul><ul><li>Definition / </li></ul><ul><li>Design </li></ul><ul><li>Best Practices </li></ul>
    17. 17. Organizational Infrastructure Required for CMMI Level 3 Developing and maintaining mature processes requires significant time and investment in infrastructure
    18. 18. Lessons Learned from CMMI <ul><li>Treat the Process Improvement initiative like a project </li></ul><ul><ul><li>Assign a project leader, staff, budget </li></ul></ul><ul><ul><li>Demand plans, schedule, measurable progress, periodic status meetings </li></ul></ul><ul><li>Get experienced, outside experts to coach the effort </li></ul><ul><ul><li>Lead initial gap appraisal </li></ul></ul><ul><ul><li>Help develop strategy, plan, budget, schedule, </li></ul></ul><ul><ul><li>and measurable milestones </li></ul></ul><ul><ul><li>Provide advice along the way </li></ul></ul><ul><li>Set goals (Level X in YYYY) after the initial appraisal </li></ul><ul><ul><li>Compare the gap to the budget available </li></ul></ul><ul><ul><li>Communicate the goals to everyone involved </li></ul></ul><ul><li>Walk the talk – make change a priority </li></ul><ul><ul><li>Communicate the need for change </li></ul></ul><ul><ul><li>Expect resistance -- change is hard </li></ul></ul><ul><ul><li>Demand project managers take responsibility for making the needed changes </li></ul></ul><ul><li>Communicate and share policies, processes, template, tools, experience, experts </li></ul>
    19. 19. Summary & Concluding Remarks <ul><li>Too much emphasis on being reactive to “pain” areas, not enough on process management (proactive vs. reactive, pain vs. opportunities) </li></ul><ul><li>Heavy focus is needed on data collection & analysis, and process analysis to break down and solve problems </li></ul><ul><li>Not enough emphasis on adoption of best practices with “mini” DFSS to address process gaps quickly </li></ul><ul><li>Understanding process maturity can assist an organization in making effective improvement in critical process areas </li></ul>

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